A Framework for Managing Packaged Software Development

Packaged software is a multi-billion dollar, rapidly growing industry. To stay competitive, firms in this industry must effectively manage frequent releases of new software versions. In this paper, we propose a model based framework for managing the development of new software releases. This framework links development effort to market share performance via the attractiveness of the software to the customer. The framework generates several empirical hypotheses concerning how development effort and degree of innovation are influenced by intensity of rivalry, level of development technology, time compression pressure, and rate of market growth. We also present some empirical data which suggests that, within a software category, the size of a software package is a predictor of its attractiveness.